Looking at the Swedish railway, the issue is related to budget but the problem is not that simple. The main issue is that the railway system lacks redundancy in track capacity, meaning that any failure require short term fixes in order to reduce short term losses. Those short term fixes eventually leads to overall higher downtime and higher failure rates, which only lead to a even more focus on quick fixes and shoddy repairs. Building out new capacity becomes too expensive and takes too long time, and takes money from the budget that is needed to do all the quick fixes that pop up. When those lines become too popular, the pressure only increases to continue do quick fixes, since any downtime has even larger impact both on the straining cargo traffic and passenger throughput.

It becomes like the meme when people talk about nuclear power. Sure, it would had been an good idea 10-20 years ago, but there is no time to do it now and it cost too much. Next year will be even later, and it will cost even more. Any new funding need to be channeled directly to the starving short-term budget, which will continue to always be too low on funding.

This is backwards. The public transit lobby is the Green/climate lobby which is absolutely massive and incredibly influential because it peddles to politicians a unifying moral story about the end of the world that justifies unlimited exercise of political power.

What does the auto industry have in response? Jobs? The left don't care about jobs to begin with, they view anything linked to capitalism or employers to be inherently suspicious.

To see this is true, just look at which group is a net tax payer vs net tax recipient. Car drivers subsidize public transport everywhere I know of (unless you get into stupid arguments that assume world peace exists solely for the purpose of oil transport).

Inability to competently manage finances within the framework of populist democratic politics is one of the top reasons governments suck at running things and "public *" often ends in failure.

No, auto industry is dying in Germany and was more powerful in the past. German railway collapse is a recent phenomenon. It's the inverse: the Green push to make everyone use public transport is collapsing both the auto industry and public transit there.